Government contracts out of reach of SMEs

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The process of applying for public sector contracts is stacked against small and medium-sized companies, according to a survey.

Around a third of SMEs told the Tenon poll that they had applied for government contracts and of those, 85 per cent said that smaller firms were put at a disadvantage.

Government contracts amounted to £4.7 billion last year and, according to DTI figures, £1 billion went to small businesses.

Accountants and business advisers Tenon said that the laborious application process, the inexperience of the government officers managing it, and the suspicion that decisions were already made before tenders went out